Income Taxes (Tables)

12 Months Ended

Jan. 30, 2026

The provision for income taxes for each of the periods presented include the following:


	Year Ended
	January 30, 2026		January 31, 2025		February 2, 2024
	(in millions)
Current:
Federal	$	(64)	$	56	$	125
State	11		13		35
Foreign	1		—		—
Deferred:
Federal	82		(4)		(19)
State	(1)		1		2
Total	$	29	$	66	$	143

Reconciliation of Provision for Income Taxes Computed by Statutory Federal Income Tax Rate

A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate to income before income taxes is as follows, in accordance with prospective adoption of ASU 2023-09:


	Year Ended
	January 30, 2026
	Amount		Percent
	(dollars in millions)
Amount computed at the statutory federal income tax rate	$	81	21.0	%
State income taxes, net of federal income tax effect(1)	13		3.4	%
Tax credits
Research and development credits	(10)		(2.5)	%
Other credits	(1)		(0.4)	%
Non-taxable or non-deductible items
Non-deductible compensation	7		1.7	%
Other	(1)		(0.2)	%
Changes in unrecognized tax benefits	(57)		(14.8)	%
Other	(3)		(0.7)	%
Effective income tax rate	$	29	7.5	%

(1) State taxes in Virginia and Texas contributed to the majority (greater than 50 percent) of the tax effect in this category.

A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate to income before income taxes for each of the periods presented was as follows, before the adoption of ASU 2023-09:


	Year Ended
	January 31, 2025			February 2, 2024
	(dollars in millions)
Amount computed at the statutory federal income tax rate	$	90		$	130
State income taxes, net of federal tax benefit	10			32
Research and development and other federal credits	(22)			(17)
Non-deductible compensation	3			10
Excess tax benefits for stock-based compensation	(4)			(4)
Non-deductible goodwill	—			13
Foreign-derived intangible income	(15)			(22)
Other	4			1
Total	$	66		$	143
Effective income tax rate	15.5		%	23.1		%

Deferred Tax Assets and Liabilities

Deferred tax assets (liabilities) were comprised of:


	January 30, 2026		January 31, 2025
	(in millions)
Accrued vacation and bonuses	$	25	$	27
Deferred compensation	20		20
Net operating loss and other carryforwards	155		61
Lease liability	55		48
Research and development expenditures	21		197
Other	15		20
Valuation allowance	(7)		(7)
Total deferred tax assets	284		366
Deferred revenue	(31)		(40)
Purchased intangible assets	(297)		(302)
Right of use assets	(48)		(41)
Other	(12)		(7)
Total deferred tax liabilities	(388)		(390)
Net deferred tax (liabilities) assets	$	(104)	$	(24)

Changes in Unrecognized Tax Benefits

The changes in the unrecognized tax benefits were:


	Year Ended
	January 30, 2026		January 31, 2025		February 2, 2024
	(in millions)
Unrecognized tax benefits at beginning of the year	$	110	$	117	$	158
Additions for tax positions related to prior years	2		1		5
Additions for tax positions related to the current year	6		14		21
Reductions for tax positions related to prior years	(46)		(8)		(59)
Reductions for settlements with taxing authorities	(19)		—		—
Reductions for prior year tax positions related to statute expiration	(5)		(14)		(8)
Unrecognized tax benefits at end of the year, excluding accrued interest and penalties	$	48	$	110	$	117
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$	43	$	104	$	111
Accrued interest and penalties	$	7	$	17	$	13

Schedule of Cash Flow, Supplemental Disclosures

Income taxes paid (net of refunds) consisted of the following:


	Year Ended
	January 30, 2026
	(in millions)
U.S. Federal	$	10
U.S. State and Local
California	4
Texas	2
Virginia	3
Other	2
Foreign	1
Total cash paid for income taxes, net of refunds	$	22